San Jose Outlines Transit Funding Priorities Ahead of Regional Ballot

City council approves plan to allocate $264 million in potential new revenue between service improvements, construction projects, and road repairs.

Apr. 15, 2026 at 10:06pm

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A warm, cinematic painting depicting an isolated bus stop bench in soft, golden light, conveying a sense of melancholy and the need for investment in public transit infrastructure.As Bay Area transit agencies struggle with pandemic-era budget shortfalls, San Jose's funding priorities aim to revitalize aging bus stops and improve everyday service for the region's most transit-dependent communities.San Jose Today

As Bay Area transit agencies face the threat of major service cuts, the San Jose City Council has unanimously approved a plan to outline the city's funding priorities for the Valley Transportation Authority (VTA) ahead of a November 2026 regional ballot measure. The plan recommends directing $264 million in projected annual revenue into three key areas: service improvements, major construction projects, and repairing bus-heavy roads.

Why it matters

The regional ballot measure, if approved, would levy a sales tax to fund transit systems across the Bay Area, including Caltrain, BART, Muni, and AC Transit. With many agencies projecting multi-million dollar deficits in the coming years due to pandemic-era ridership losses, this funding is seen as crucial to avoiding potential station closures and service cuts. San Jose's priorities aim to direct the most resources toward improving day-to-day transit service and experience for riders.

The details

The San Jose plan calls for allocating 50% of the funding toward service improvements like upgraded transit stations, cleaner and safer vehicles, more frequent routes, signal priority for buses, and discounted or free passes for young riders. Another 30% would go toward major construction projects, including the redevelopment of Diridon Station, a new rail link to the airport, and upgrades to light rail and Caltrain. The remaining 20% would fund repaving of streets that carry heavy bus traffic.

  • In October 2026, Gov. Gavin Newsom signed Senate Bill 63, authorizing the regional transit sales tax measure for the November 2026 ballot.
  • The VTA board plans to consult with other local governments in the coming months before finalizing any funding framework.

The players

San Jose City Council

The San Jose City Council unanimously approved the city's transit funding priorities plan for the VTA ahead of the 2026 regional ballot measure.

Valley Transportation Authority (VTA)

The transit agency serving Santa Clara County, which is facing potential service cuts due to pandemic-era ridership losses and is participating in the regional ballot measure effort.

Pamela Campos

A San Jose city councilmember who noted inadequate transit infrastructure in her district, such as bus stops without shelters or sidewalks.

Peter Ortiz

A San Jose city councilmember who represents the city's most transit-dependent district and raised concerns about the VTA's outreach and construction impacts in his area.

Adina Levin

The executive director of Seamless Bay Area, a transit advocacy group that urged the city council to direct at least 80% of funding toward service improvements and transit priority investments.

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What they’re saying

“In my district, which Monterey Highway runs along, there's a bus stop that does not have shelter and very little sidewalk. And I have seen people waiting on the Caltrain train tracks to get some shade as they wait for the bus.”

— Pamela Campos, San Jose City Councilmember

“These dollars can go further, supporting more activity along our corridors, strengthening our small business community and making our neighborhoods more connected. When we invest in transit for the communities that rely on it the most, we're investing in workforce access — local small businesses gain access to customers, to workers, and to the overall vitality of these neighborhoods.”

— Peter Ortiz, San Jose City Councilmember

“Good luck getting votes from District 5 residents — good luck — because they're unhappy with VTA.”

— Peter Ortiz, San Jose City Councilmember

“It's a unique opportunity for increasing ridership. Over time there are a lot of different funding sources for capital, and it is historically more difficult to fund basic service.”

— Adina Levin, Executive Director, Seamless Bay Area

“It is just incredible to see how attitudes have changed on service and how our leaders are prioritizing investments that will impact riders and residents right now. Not having flexibility has hurt us quite a lot. We should learn from our past mistakes and do better.”

— Monica Mallon, San Jose-based transit advocate

What’s next

The VTA board plans to consult with other local governments in the coming months before finalizing any funding framework for the 2026 regional ballot measure.

The takeaway

San Jose's transit funding priorities reflect a shift toward prioritizing immediate service improvements and rider experience over major capital projects, signaling a growing recognition that reliable, frequent, and accessible public transportation is crucial for communities that rely on it most. However, the city's concerns about the VTA's outreach and construction impacts in certain neighborhoods highlight the need for the agency to improve its engagement with local stakeholders to build broader support for the ballot measure.